Madrona Links Golf Course

June 23, 2025
PenMet Parks anticipates engaging Troon Golf through a short-term interim management agreement to manage and operate Madrona Links Golf Course. Troon Golf, which is the world’s largest professional golf management company, was selected using a competitive procurement process to replace current operator Stutsman Enterprise.

The Board of Park Commissioners is expected to consider authorizing the Executive Director to sign the interim management agreement with Troon in summer 2025. Consistent with the National Golf Foundation recommendations and previous public communications, PenMet Parks intends to solicit proposals and select a permanent Madrona Links operator in 2028.

PenMet Parks terminated the original tenant, Tyson LP, based on its failure to perform significant deferred maintenance or correct numerous deficiencies identified at the golf course. This included such things as overcrowded trees that adversely impact the golf course and its playability, and fairways, tee-boxes, and cart paths in poor condition, all of which remain a problem.

After terminating Tyson, in January 2025, PenMet Parks assumed the Stutsman Enterprise Sublease. At the same time, PenMet Parks provided notice to Stutsman Enterprise that it was responsible for performing the deferred maintenance and correcting the deficiencies.  Stutsman Enterprise refused, and, as a result, PenMet Parks is moving forward with terminating the Stutsman Sublease and replacing it with Troon Golf. PenMet Parks is accountable to taxpayers for its use of public funds, and will take appropriate actions to hold Tyson and Stutsman responsible for their obligations under the operating lease and the sublease.

PenMet Parks understands the importance of Madrona Links Golf Course to our community, and remains committed to maintaining Madrona Links Golf Course as a public 18-hole course. PenMet Parks will continue to provide transparent and accurate information about its plans for Madrona Links, including the planned transition from the current operator to the interim operator. Updates will be posted on this web page.

Please email us at [email protected] to submit your questions.

December 12, 2024
PenMet Parks is continuing to take steps to preserve Madrona Links Golf Course. In an effort to keep our community informed, we have updated the Frequently Asked Questions posted below.

Email us at [email protected] to submit questions to be included in future updates to the FAQs, or to request to be added to future updates.

November 6, 2024
On November 5, the Park Board passed Resolution R2024-016 authorizing the acquisition of the 14-acre parcel through eminent domain to protect and preserve the public’s use of Madrona Links Golf Course.

In addition, the Board heard a special presentation regarding Madrona Links Golf Course Updates during the November 5 meeting. View the presentation here.

PenMet Parks has made every effort to negotiate a purchase of the 14-acre parcel with ZTM, the current owner, in order to keep Madrona Links Golf Course intact and protect its future as a public golf course. Unfortunately, ZTM’s unwillingness to engage in good faith negotiations with PenMet Parks and threats to develop the property into residential housing are jeopardizing the future of Madrona Links Golf Course. Their actions leave PenMet Parks with no other option but to consider acquiring the property through eminent domain to preserve it for public use.

Even though the Board passed the resolution, ZTM can still choose to engage in good faith negotiations with PenMet Parks to sell the property in an arms-length transaction to avoid eminent domain proceedings.

Please review the November 5 Madrona Links Golf Course Updates presentation and read the Frequently Asked Questions below for more information.

Email us at [email protected] to submit questions to be included in future updates to the FAQs, or to request to be added to future updates.

October 22, 2024
The Board of Park Commissioners will consider a resolution authorizing the acquisition of the 14-acre parcel through eminent domain during its November 5, 2024 Regular Meeting which will be held at 6 p.m. at the District Headquarters (2416 14^th Street NW, Gig Harbor, WA 98335). Public comment will be accepted at the meeting.

PenMet Parks has made every effort to negotiate a purchase of the 14-acre parcel with ZTM, the current owner, in order to keep Madrona Links Golf Course intact and protect its future as a public golf course. Unfortunately, ZTM’s unwillingness to engage in good faith negotiations with PenMet Parks and threats to develop the property into residential housing are jeopardizing the future of Madrona Links Golf Course. Their actions leave PenMet Parks with no other option but to consider acquiring the property through eminent domain to preserve it for public use.

If the Park Board passes the resolution, ZTM can still choose to engage in good faith negotiations with PenMet Parks to sell the property in an arms-length transaction to avoid eminent domain proceedings.

Please read the new Frequently Asked Questions below for more information.

Email us at [email protected] to submit questions to be included in future updates to the FAQs or to request to be added to future updates.

October 18, 2024
PenMet Parks terminated the primary Madrona Links Golf Course operating lease with the tenant, Tyson, due to ongoing unresolved deficiencies in course maintenance and operations. This action will not adversely impact Madrona Links Golf Course operations or the public’s ongoing ability to play golf. Stutsman Enterprises, which has performed all Madrona Links operations and maintenance since 2014, will continue to operate Madrona Links under its existing sublease.

PenMet Parks issued Notices of Default to Tyson in November 2023 and July 2024. In both notices, PenMet Parks identified material deficiencies in the operations, maintenance, and business practices of Madrona Links Golf Course and pursuant to the terms of the primary lease demanded Tyson correct those issues within 90 days. Unfortunately, despite having every opportunity to correct the deficiencies, Tyson failed to take any corrective action, leaving PenMet Parks with no choice but to terminate the primary lease on October 18, 2024.

As a public agency, PenMet Parks is accountable to the public for stewarding its public assets. This includes holding Tyson responsible for their contractual obligations under the primary lease to properly operate and maintain Madrona Links Golf Course.

Stutsman Enterprises will continue to perform golf course operations and maintenance under its existing sublease, subject to PenMet Parks oversight.

Please read the new Frequently Asked Questions below for more information.

Please email us at [email protected] to sign up for Madrona Links updates or to submit questions to be included in future updates to the FAQs.

PenMet Parks expects to engage Troon Golf as the interim Madrona Links operator. Troon was selected using a competitive Request for Proposal process to provide interim management services at Madrona Links. Troon has extensive golf management and hospitality experience and provides services at over 925 locations. Troon’s professional expertise in operations, capital planning, and marketing, access to local resources and purchasing power, and alignment with our community’s goals for Madrona Links will be a benefit to Madrona Links Golf Course, its users, and stakeholders.

Troon is expected to begin managing Madrona Links in summer 2025.

PenMet Parks and Troon are committed to a smooth transition in order to maintain Madrona Links operations. Stutsman Enterprise has advised PenMet Parks that it will participate cooperatively to provide an orderly and businesslike transition of golf course operations to avoid any interruption of the use of the golf course by its patrons.

No. Scheduled tournaments and events will continue as planned.

In accordance with Policy P40-102: Purchasing Policy adopted on June 21, 2022, PenMet Parks began soliciting proposals for interim golf course management in December 2024 from firms providing, or who have provided, golf course management and operations services to municipalities in Washington, and received four written proposals. The District formed a selection committee that evaluated the submissions and interviewed each firm. After ranking the four proposals, the selection committee identified Troon Golf as the highest ranked firm based on price and qualifications.

Troon Golf has extensive experience and operates hundreds of public and private golf courses. In Washington, Troon Golf manages and operates the Bellevue Golf Course, Lake Padden Golf Course, Lynnwood Golf Course, Cedarcrest Golf Course, Ocean Shores Golf Course, and several golf courses for the City of Seattle and the City of Everett. Troon also manages private courses in the region, including Gamble Sands, Mill Creek Country Club, and Fairwood Country Club. Troon has the professional expertise and resources necessary to operate Madrona Links and, because of its economies of scale, has access to a variety of golf-related experts, discounted equipment, and supplies necessary for golf course operations.

Troon Golf will provide all personnel, management, supplies, and oversight necessary to manage and operate Madrona Links Golf Course to meet or exceed community expectations, and will engage stakeholders in developing strategies to improve patron satisfaction. Over time, golfers can expect to see improved course conditions and enhanced service levels at Madrona Links. Additionally, PenMet Parks expects enhanced community programming and engagement opportunities for golfers and non-golfers alike.

Presently, PenMet Parks does not anticipate any changes to the golf course days or hours of operation, or any increases to greens fees in 2025.   

Under the current operating lease, PenMet Parks receives revenue based on a percentage of the greens fees collected. From 2019 – 2023, PenMet Parks received a total of approximately $355,000 in net revenue. During the same period, Tyson and Stutsman reported receiving a combined total of approximately $1.95 million in net revenue.

Under the interim management agreement, PenMet Parks will realize 100% of the net revenue from Madrona Links Golf Course. Based on Madrona Links historical financial performance as reported by Stutsman, PenMet Parks anticipates the management agreement will result in an increase in net revenue to the District, even after management fees and other expenses, that could be reinvested in Madrona Links. Troon will submit monthly reports on all financial aspects of Madrona Links. Troon will also prepare reports to allow the District to re-evaluate Madrona Links performance and prioritize the deferred maintenance work using data collected after the first year of operations under the interim management agreement.

No. Over the next 2-3 years, PenMet Parks still plans to develop the long-term operating structure in consultation with the National Golf Foundation and input from the public and Madrona Links patrons. PenMet Parks will then request proposals and select a permanent operator in 2028.

When PenMet Parks assumed the Stutsman sublease, it expected Stutsman to fulfill its contractual responsibilities, correct the deferred maintenance and perform the operations required to improve conditions at Madrona Links until the lease expired in 2028. When Stutsman failed to perform, PenMet Parks was forced to take immediate action to replace Stutsman with an interim golf course operator. The term of the Troon Golf interim management agreement is three years. During this period, Troon will focus on improving course conditions and providing financial and other performance data for PenMet Parks to use in planning for long-term Madrona Links operations.

PenMet Parks remains committed to operating Madrona Links as a public 18-hole golf course and is considering either a full-service management agreement or a comprehensive golf property lease as recommended by the National Golf Foundation (NGF). During the next three years, PenMet Parks will evaluate both operating models, engage the public and NGF to develop a scope of work, and procure a long-term golf course operator. The permanent operator is expected to begin in 2028.

Yes. PenMet Parks anticipates entering into an updated lease agreement with Hackers Bar and Grill, which will run for the remainder of Hacker’s original lease term.

In November 2024, the Park Board authorized staff to commence an eminent domain action. PenMet Parks has not yet commenced eminent domain proceedings and has continued to attempt good faith negotiations with ZTM, however ZTM has not responded to PenMet Parks’ most recent proposal. PenMet Parks remains willing to purchase the property from ZTM at the appraised value of $2.49 million, which is a significant profit based on its purchase price of $1 million in January 2024.

No. After receiving the Notices of Default, the most recent issued in July 2024, Tyson made no efforts to correct any of the deficiencies. As a result, PenMet Parks terminated the Tyson primary lease on October 18, 2024. When the Tyson lease was terminated, Tyson forfeited its right to terminate the Stutsman Sublease. Read more here.

Although Tyson attempted to terminate the Stutsman Sublease on November 19, 2024, the notice was not effective because PenMet Parks has 90 days to assume or reject the Stutsman Sublease.

No. The statute of frauds does not apply to the Consent to Sublease. The parties’ performance under the Consent to Sublease removes it from the statute of frauds.  Additionally, the statute of frauds was amended to specifically exempt leases. Read more here.

Yes. On December 6, 2024, PenMet Parks proposed a settlement offer to ZTM/Tyson in which ZTM would transfer the property to PenMet Parks and some funds to correct the deferred maintenance. In exchange, PenMet Parks would release all of its claims against Tyson/ZTM for deficiencies at Madrona Links Golf Course. The National Golf Foundation estimates the actual costs at approximately $6-$7 million. Read more here.

No. On November 22, 2024, ZTM proposed to purchase PenMet Parks’ 80 acres “for the purpose of establishing the future of the golf course as a privately owned public course dedicated solely for golf course use for the next fifty years.” PenMet Parks rejected this offer for two reasons:

1. in order to sell the property, PenMet Parks must declare it surplus for park and recreation purposes, and its continued use as a golf course demonstrates it is necessary for park and recreation purposes; and
2. as a public agency, PenMet Parks cannot negotiate the sale of real property with a single party, but rather it must conduct a public bidding process to ensure the sale is at fair market value and to protect the public.

Even if PenMet Parks was not subject to those requirements, selling the property would put Madrona Links Golf Course at risk. Even if there was a protective covenant in place requiring the property be used only as a public golf course for 50 years, the covenant fails to provide effective mechanisms for enforcement. During that time, ZTM could sell the property or lease it to an unqualified operator, creating more uncertainty for Madrona Links in the future. Additionally, ZTM’s proposal required that the protective covenant expire after 50 years at which time the property would no longer be subject to any restrictions. This would allow ZTM to sell the property at a significant profit for any use allowed under the applicable codes, which would be detrimental to the public interest.

PenMet Parks commissioned a certified Member of the Appraisal Institute (MAI appraiser) to prepare an objective appraisal. The highly qualified MAI appraiser performed a site inspection and based his determination of the fair market value based on the property’s highest and best use and using the recent sale prices of comparable properties. 

The appraisal commissioned by ZTM contains numerous inconsistencies and is based on properties that are significantly different from the characteristics of ZTM’s 14 acre parcel, resulting in a grossly inflated value of $8.1 million. PenMet Parks has shared its concerns about the validity of the appraisal with ZTM.

Eminent domain, which is sometimes referred to as condemnation, is a process to acquire private property necessary for public use following due process of law and payment of fair compensation to the owner. The property must be acquired for public use, and will not be acquired for less than fair market value.

After exhausting all other options to preserve the future of Madrona Links, eminent domain is the only remaining avenue to protect the golf course.

PenMet Parks has made every reasonable effort to purchase the 14-acre property through good-faith negotiation with the previous and current owners, and will continue to attempt to reach a mutually acceptable agreement to avoid eminent domain proceedings.

The current owner of the 14-acre parcel, ZTM, has threatened to develop the land into 72 residential housing units, which would prevent Madrona Links Golf Course from operating as a public 18-hole championship golf course and impact the surrounding neighborhoods.

In August 2024 ZTM rejected PenMet Parks’ offer to purchase the property at fair market value of $2.49 million, which is based on a professional appraisal. ZTM purchased the property for just $1 million several months prior.

ZTM stated it is not interested in selling or leasing the property to PenMet Parks to allow Madrona Links to continue as a golf course.

Unfortunately, ZTM’s threat of development and their unwillingness to engage in good faith negotiations have endangered the future of Madrona Links and have left PenMet Parks with no other option but to consider proceeding with acquiring the property through eminent domain.

PenMet Parks does not take such an action lightly, but having exhausted all other avenues, eminent domain is the only remaining option for protecting the public’s interest in continuing to use the property.

PenMet Parks welcomes good faith negotiations with ZTM to avoid eminent domain proceedings.

Although PenMet Parks owns approximately 80 acres of land that Madrona Links Golf Course is situated on, a private entity, ZTM, owns a 14-acre parcel that comprises part of the course. Read more about the history of the land the golf course in the 8/13/2024 14 Acre Parcel FAQs below.

ZTM has threatened to develop the land into 72 residential housing units, which would prevent Madrona Links Golf Course from operating as a public 18-hole championship golf course and impact the surrounding neighborhoods.

If the parcel is redeveloped into housing, there is not enough room within the 80 acres owned by PenMet Parks and the golf course could not remain an 18-hole golf course.

PenMet Parks understands the importance of Madrona Links Golf Course to our community and is committed to maintaining Madrona Links as a public 18-hole golf course.

ZTM purchased the 14-acre parcel for $1 million in January 2024.

PenMet Parks offered ZTM the full appraised value of $2.49 million to purchase the property in July 2024.

No. ZTM rejected PenMet Parks’ offer. ZTM has stated they will not willingly sell or lease the property to PenMet Parks except at the inflated value of $8 million.

Eminent domain is the only remaining option to keep the golf course properties intact and to preserve the full golf course for public use after the current operating lease expires in 2028.

The 14-acre parcel is required to maintain Madrona Links use as an 18-hole public golf course. Unfortunately, ZTM has refused to engage in good faith negotiations with PenMet Parks for the purchase of the property and has refused to lease the property to PenMet Parks.

Moreover, ZTM has threatened the future of Madrona Links by suggesting they will develop the 14-acre property into 72 housing units.

These actions have left PenMet Parks with no reasonable alternative but to protect the public interest by acquiring the property through eminent domain.

Eminent domain proceedings are not expected to impact current Madrona Links operations.

The $2.49 million purchase price will be funded through the General Fund. In 2023, PenMet Parks began appropriating funds to purchase the 14-acre parcel and has set aside $1 million to date. The balance will be funded through contingency funds.

The following is a summary of the relevant events that led to PenMet Parks’ decision. More details are available in the FAQs and document library on this web page.

• 1977: City of Tacoma leases approximately 80 acres to Tyson and Tyson purchases the adjoining 14-acre parcel. Tyson develops and constructs the golf course.
• 2008: PenMet Parks purchases Madrona Links from the City of Tacoma for $2 million.
• 2023: PenMet Parks begins appropriating funds for the purchase and acquisition of the 14-acre parcel to preserve the future public use of Madrona Links.
• 2023: PenMet Parks expresses interest in purchasing the 14-acre parcel from the previous owner, Tyson.
• January 2024: Without consulting or attempting to negotiate with PenMet Parks, Tyson sells the property to a private party, ZTM, for $1 million, a deeply discounted price.
• March 2024: PenMet Parks commissions a certified appraisal that concludes the fair market value of the 14-acre property to be $2.49 million.
• July 2024: PenMet Parks provides a complete copy of the appraisal to ZTM and offers to purchase the property from ZTM at the full appraised value of $2.49 million. PenMet Parks’ offer is two and one-half times the amount ZTM purchased the property for several months earlier. This offer was not made under the threat of eminent domain and was PenMet Parks’ good faith attempt to engage the owners in an arm’s-length negotiation to purchase the property.
• August 2024: ZTM rejects PenMet Parks’ offer.
• August 2024: ZTM states they could develop the 14 acres into housing, jeopardizing the future of Madrona Links Golf Course.
• August 2024: ZTM states PenMet Parks would need to pay $8 million to purchase the property – significantly more than the appraised value of $2.49 million and eight times the amount ZTM paid for it eight months earlier.
• September 2024: ZTM states it has no interest in selling or leasing the property to PenMet Parks.
• November 2024: Board of Park Commissioners will consider a resolution authorizing acquisition of the 14-acre parcel through eminent domain.

The Park Board will consider a resolution authorizing the acquisition of the 14 acres through eminent domain at its November 5, 2024 Regular Board Meeting held at 6 p.m. at the District Headquarters (2416 14^th Ave, NW, Gig Harbor, WA 98335). Public comment will be accepted at the meeting.

If the Park Board passes the resolution, ZTM can still choose to engage in good faith negotiations with PenMet Parks to sell the property in an arms-length transaction to avoid eminent domain proceedings.

The day-to-day course operator and the day-to-day course operations will not change.

Stutsman Enterprises remains responsible for operating and maintaining Madrona Links Golf Course under the current sublease, which expires in 2028, and those operations will continue.

PenMet Parks is not “taking over” the lease and will not operate Madrona Links Golf Course. However, PenMet Parks will provide oversight of the Stutsman Enterprises sublease.

PenMet Parks issued Notices of Default to Tyson in 2023 and 2024. The Notices identified significant deficiencies in the operations, maintenance, and business practices of Madrona Links Golf Course and directed Tyson to correct those issues within 90 days. The Notices advised Tyson that, if they did not take action, PenMet Parks would terminate the lease.

Unfortunately, and despite having been provided every opportunity to correct the deficiencies, Tyson failed to take any action. Instead, in an attempt to abandon its responsibilities to properly operate or maintain Madrona Links, Tyson directed PenMet Parks to work directly with Tyson’s sub-tenant, Stutsman Enterprises, to resolve the deficiencies.

Tyson’s failure to fulfill its obligations under the lease and attempt to avoid its contractual obligations, while at the same time collecting a significant profit from the golf course operations, left PenMet Parks with no choice but to terminate the primary lease.

Termination of the Tyson lease will not impact golf course operations or public use of the golf course.

Although the primary lease with Tyson was terminated due to their failure to correct significant course deficiencies, the sublease with Stutsman Enterprises, who has performed all course operations and maintenance since 2014, remains in place. PenMet Parks will provide oversight of Stutsman Enterprises to ensure that Stutsman fulfills its contractual obligations.

No.

Termination of the primary operating lease will not affect the ongoing operation of Madrona Links Golf Course, including the ability to use the 14-acre parcel that Tyson sold to ZTM in 2024 (See 8/13/2024 14 Acre Parcel FAQs below). The 14-acre parcel was sold to ZTM subject to a provision that allows for the continued use of the parcel as part of the golf course for the duration of the sublease.

PenMet Parks has made every reasonable effort to acquire the 14-acre parcel from ZTM through arm’s length negotiation so that the entire course is owned by PenMet Parks and can remain an 18-hole golf course for public use in perpetuity. Unfortunately, ZTM declined PenMet Parks’ offer to purchase the 14-acre parcel at the appraised fair market value of $2.49 million, despite purchasing the property for only $1 million a few months prior.

PenMet Parks remains committed to maintaining Madrona Links as an 18-hole public golf course. PenMet Parks is exploring options to acquire the 14-acre parcel to keep Madrona Links Golf Course intact after the operating sublease expires.

PenMet Parks began receiving increased feedback from concerned golfers and citizens regarding the condition of Madrona Links Golf Course in 2023. As a result, PenMet Parks commissioned National Golf Foundation Consulting to conduct a comprehensive assessment of the golf course, including a physical inspection of course conditions and operations and to subsequently prepare a comprehensive report. A copy of the NGF report may be viewed here.

The report confirmed many of the concerns voiced by our community and found significant deficiencies in both the maintenance and ongoing operations at Madrona Links Golf Course, including significant deferred and overdue maintenance and repairs.

On July 15, 2024, PenMet Parks advised the Tysons that they were in default for failure to comply with the Lease and provided a Notice of Default that identified specific, measurable deficiencies that needed to be corrected within 90 days.

At the conclusion of the 90-day period, Tyson had not taken any action to address the deficiencies. Instead, Tyson directed PenMet Parks to work directly with Stutsman Enterprises to correct the defaults, effectively attempting to avoid their responsibilities under the lease.

Terminating the primary lease does not relieve Tyson of its responsibility for the cost to restore the golf course to the condition specified in the operating lease.

PenMet Parks is accountable to the taxpayers for its use of public dollars, and will take appropriate actions to hold Tyson responsible for their obligations under the lease.

No. Hackers Bar and Grill operations will not be affected by this change.

Stutsman Enterprises sub-leases directly to Hackers Bar and Grill. The Stutsman sublease, and the Hackers Bar and Grill sub-sublease are not impacted by the termination of the primary lease.

Click here for the Madrona Links operational structure. 

PenMet Parks recently conducted a survey and the majority of respondents indicated that the golf course is meeting the recreational needs of our community. To assist with long-range planning, PenMet Parks engaged the National Golf Foundation to provide a comprehensive review of the course, its physical condition, needed improvements, operating profile, market environment and economic potential.  See below to view the National Golf Foundation report.

In addition, and to help plan for the future, the Board of Park Commissioners has been appropriating funds for future investment in Madrona Links. These funds were set aside in the budget for future use and do not “expire”. The specific use for the funds has not been determined, but will be as part of an overall and comprehensive plan for the golf course.

Read more in the Document Library below under “NGF Assessment”.

To date, PenMet Parks has invested $3 million into Madrona Links. PenMet Parks purchased the property in 2008 for $2 million and has appropriated an additional $1 million for future course improvements.

In addition, PenMet Parks has limited the rent it collects as the property owner to ensure that the tenant has sufficient funds to properly operate and maintain the golf course and its facilities.  The following is a chart showing the net revenue to each:

The tenant, Tyson, who provides no services as they rely on their sub-tenant (Stutsman) to perform that work, receives more in income than PenMet Parks and invests none of those funds in Madrona Links. Similarly, the sub-tenant receives considerably more in net revenue, none of which is invested in Madrona Links. This totals almost $2 million between 2019-2023 that Tyson should have invested in properly maintaining Madrona Links.

Please email us for more information or to share any feedback regarding the Madrona Links Golf Course. PenMet Parks will document any feedback it receives and share that with the third party operator so that any concerns may be addressed.

PenMet Parks plans to keep Madrona Links a public 18-hole golf course.

The City of Tacoma originally owned Madrona Links and in 1977 leased it to Ken Tyson, who designed, developed and operated the course. This third party operator has a 50 year lease that expires in 2028. In 2008, the City of Tacoma sold Madrona Links and assigned the lease to PenMet Parks. Today, PenMet Parks owns the golf course and the third party operator is responsible for day-to-day golf course operations, maintenance, and capital improvements.

Read more in the Document Library above under “Madrona Links Operational Structure”.

No, PenMet Parks is not attempting to “take over” the golf course. However, PenMet Parks is holding the tenant and third-party operator, Tyson, responsible for performing its duties to properly manage and maintain the golf course in accordance with the Lease. Numerous deficiencies in the course and improvements have been identified by PenMet Parks and in the Madrona Links Assessment conducted by the National Golf Foundation, and Tyson is currently in default under the Lease for failing to properly maintain the property. Tyson, who appointed Zack Rosenbloom as its managing representative in January 2024, has not made any effort to correct the deficiencies.

Read more in the Document Library below under “Default Letters to Tyson”.

No.  PenMet Parks has never stated that it would take control of the golf course operations and no “hostile takeover” has ever been suggested or planned. However, PenMet Parks will hold the tenant accountable for complying with the Lease and Tyson’s failure to comply may result in termination of the Lease.

Madrona Links has been publicly owned by a government agency since it opened in 1978, but run by a private operator. One of the purposes of engaging the National Golf Foundation (NGF) was to explore the options for the future golf course management and operational structure as the current operating lease is set to expire in 2028. In its report, NGF outlined several different operating structures including self-operation, concessions agreements, full-service management contract, hybrid contract and operating lease(s). NGF recommended PenMet Parks consider either a full-service management agreement or a comprehensive golf property lease as the most viable options. Neither of those options would involve PenMet Parks as the golf course operator.

PenMet Parks is not considering closure of Madrona Links Golf Course as an option.

Read more in the Document Library below under “NGF Assessment”.

Pursuant to the terms of the 1977 Lease, the third party operator is responsible for managing and maintaining the golf course, the pro shop and the restaurant.  This includes all golf course maintenance, repair, and capital improvements.

Read more in the Document Library below under “Madrona Links Operational Structure”.

The third party operator is responsible for setting the greens fees.

When Madrona Links Golf Course was developed in 1977, the City of Tacoma only owned 71 acres of land, which is not large enough to construct a full-length 18-hole course. The 1977 lease between the City of Tacoma and Tyson stipulates that, as part of developing the new course, Tyson was to acquire additional land sufficient for an 18-hole course. Ultimately, Tyson acquired the 14-acre parcel in 1977 and owned it until 2024, at which time the Tyson family sold it to ZTM (Zack Rosenbloom and Mark Owen).

Read more in the Document Library below under “1977 Lease” and “Sale of 14-Acre Parcel”.

Tyson’s sale of the 14-acre parcel does not affect the ongoing operation of the Madrona Links Golf Course.

In the 1970’s when the tenant agreed to construct the golf course pursuant to the operating lease, the tenant also agreed to acquire the 14-acre parcel to accommodate the full 18-hole course. Last summer, the tenant requested PenMet Parks consent to the tenant assigning the operating lease to a third party which would include the sale of the 14-acre parcel to that third party. PenMet Parks was unwilling to consent to an assignment of the lease, but did express interest in purchasing the property. At that time, PenMet Parks began budgeting funds to purchase the property. Without consulting or attempting to negotiate with PenMet Parks, Tyson sold the property to the third party. Tyson then demanded PenMet Parks consent to the lease assignment, which was again rejected.

Tyson is obligated under the operating lease to make the entire golf course, including the 14-acre parcel, available to the public for its use. PenMet Parks will fully enforce this obligation should the tenant fail to honor its obligations. In the meantime, PenMet Parks is exploring options to acquire the 14-acre parcel to keep Madrona Links Golf Course intact after the operating lease expires.

An appraisal commissioned by PenMet Parks determined the fair market value is significantly higher than the amount ZTM (Rosenbloom and Owen) paid to acquire the property in January 2024. In July 2024 PenMet Parks formally offered to purchase the property at its appraised fair market value from Rosenbloom and Owen. This offer was not made under the threat of imminent domain and is an attempt to engage the owners in an arm’s-length negotiation in the purchase and sale of the property.

Read more in the Document Library below under “Offer Letter to ZTM Holdings”.

The sale of the 14-acre parcel does not affect the ongoing operation of the Madrona Links Golf Course. However, PenMet Parks is making every reasonable effort to purchase the parcel in order to keep Madrona Links Golf Course intact after the Lease expires.

Despite PenMet Parks expressly stating its interest in purchasing the 14 acres from the tenant in 2023, the Tyson family sold the property to the current owners, ZTM (Rosenbloom and Owen), for the significantly discounted price of $1 million in January 2024.

In spring 2024, PenMet Parks retained a highly qualified appraiser who determined the fair value of the property is $2,490,000, more than double the amount Rosenbloom and Owen paid for the parcel just a few months prior.

In July 2024, PenMet Parks formally offered to purchase the property from Rosenbloom and Owen at the full appraised value. In its letter, PenMet Parks advised them that the offer is not made under the threat of condemnation or imminent domain. Rather, it is PenMet Parks’ effort to engage Rosenbloom and Owen in an arm’s length negotiation over the purchase and sale of the property. On August 9, Rosenbloom and Owen declined PenMet Parks’ offer. The appraisal commissioned by Rosenbloom and Owen valued the property at $8,105,000.

Read more in the Document Library below under “2024 Appraisal” and “Offer Letter to ZTM Holdings.” Read on for more about the sale of the 14-acre parcel.

Despite PenMet Parks making repeated requests, the Owen and Rosenbloom families have refused to provide any information to PenMet Parks to suggest they have any experience or qualifications to manage or operate a golf course. Simply owning the 14-acre parcel does not qualify someone to perform golf course management and operations.

Similarly, the Owen and Rosenbloom families have never provided any details about the significant investment that they say they would provide to the golf course or, equally if not more importantly, what they would expect in return for that investment. Although Rosenbloom was appointed as the managing representative by the Tyson family in January 2024, he has not addressed any of the course deficiencies, and Tyson is currently in default.

Finally, as a public agency, PenMet Parks must comply with competitive solicitation and selection requirements and may not arbitrarily award a contract to a private party. PenMet Parks anticipates using a formal Request for Proposal process to encourage proposals from experienced, professional golf course operators and managers when the current lease nears its expiration in 2028.

Tyson is currently in default under the Lease for failing to properly maintain Madrona Links Golf Course. PenMet Parks is taking appropriate actions to ensure that Tyson fulfills its obligations to meet its contractual requirements. Tyson appointed Zack Rosebloom as its managing representative in January 2024, but Rosenbloom has not made any efforts to correct the deficiencies.

Read more in the Document Library below under “Default Letters to Tyson”.

Please read the 1977 Lease in the Document Library below.

PenMet Parks is evaluating options to responsibly and sustainably operate Madrona Links Golf Course to provide public benefit when the current operating lease ends in 2028. The data provided in the National Golf Foundation report will help inform future decisions.

No – PenMet Parks plan is to continue to operate Madrona Links as a golf course. PenMet Parks recognizes the importance of the Madrona Links Golf Course to our community. In response to community concerns expressed last year, PenMet Parks retained NGF Consulting to review and assess the current golf course operation and condition and to identify areas that may not be in compliance with the operating lease between PenMet Parks and the tenant. PenMet Parks also retained NGF to provide recommendations regarding basic golf course oversight, structure and staffing so that this amenity will be available to the public in the future and in the condition expected by the public, even after the current lease expires.

In March 2024, a member of the public shared with PenMet Parks his thoughts regarding the future use of the Madrona Links Golf Course by providing a conceptual design for the property. PenMet Parks did not participate in developing the conceptual design and does not have any plans to change the use of the golf course to a different purpose. The golf course operating lease does not expire for approximately four years and citizens indicated in a recent survey that they feel Madrona Links is meeting the needs of the community. As a result, PenMet Parks has no comments on the conceptual design. PenMet Parks encourages community members to provide input as that is one of the hallmarks of a healthy public agency, and we appreciate this person’s interest and efforts.

PenMet Parks recognizes the value of Madrona Links Golf Course to our community and remains committed to keeping Madrona Links as an 18-hole golf course.

Madrona Links has always been a public golf course. It is publicly funded and open to the public.

PenMet Parks has owned the land and golf course since 2008. PenMet Parks owns 80 acres of the golf course. A private entity owns the remaining 14 acres.

PenMet Parks has never stated or implied it would conduct a “hostile takeover” of Madrona Links.

PenMet Parks is not considering closing or shrinking Madrona Links.

PenMet Parks has no plans to take control of or operate Madrona Links.

PenMet Parks’ tenant, Tyson, operates the golf course under a Lease. Tyson is responsible for all golf course, food and beverage operations, maintenance, and capital improvements.

Tyson (the contracted operator) is currently in default under the Lease for failing to correct numerous course deficiencies. Tyson has been in default since November 2023. Since then, Tyson has not taken any actions to correct the deficiencies.

Before the sale of the property to ZTM, PenMet Parks had advised Tyson it wanted to purchase the 14-acre parcel in order to keep Madrona Links Golf Course intact for the benefit of our community. PenMet Parks put aside $1,000,000 to put toward the purchase of the 14-acre parcel.

Tyson owned the 14-acre parcel that is part of the golf course until January 2024, when it sold the property to ZTM (Rosenbloom and Owen) for $1 million, a significantly discounted price. In spring 2024, PenMet Parks commissioned an appraisal of the 14-acre parcel. The appraisal found the fair market value to be $2,490,000, over twice the amount paid by Rosenbloom and Owen just a few months prior.

On July 18, 2024, PenMet Parks offered to purchase the 14-acre parcel from Rosenbloom and Owen at its full appraised value of $2,490,000. On August 7, Rosenbloom and Owen requested to extend the purchase offer review deadline from August 9 to August 15 to allow additional time to complete an appraisal. PenMet Parks agreed to extend the deadline as requested. Later in the day on August 9, Rosenbloom and Owen declined PenMet Parks’ offer. The appraisal commissioned by Rosenbloom and Owen valued the property at $8,105,000.

Rosenbloom and Owen have indicated their interest in assuming the operating lease from Tyson. PenMet Parks has attempted to work with Rosenbloom and Owen, however, despite repeated requests, Rosenbloom and Owen have refused to provide any qualifications or a specific plan to manage and invest in the course.

Rosenbloom and Owen have threatened to develop the 14 acres if PenMet Parks does not consent to them taking over the operating lease.

PenMet Parks has invested $3 million in Madrona Links Golf Course since 2008.

PenMet Parks plans to maintain Madrona Links as a public golf course.

PenMet Parks has not considered any other uses for the Madrona Links property.